FBM Ch 4 Budget Analysis

Front

What are the four factors of production mentioned in the document?

Back

Capital, Labor, Land, Management

Front

Why is planning important for farm or ranch business management?

Back

It leads to increased returns.

Front

What is the primary purpose of a budget according to the text?

Back

To plan for action by the business

Front

Which of the following is NOT listed as a benefit of budgeting?
Helps plan for the useful life of assets,
Provides a formal budget for economic changes,
Encourages experimentation without commitment,
Identifies cost and income items that might be overlooked

Back

Provides a formal budget for economic changes

Front

What are enterprise budgets primarily used for?

Back

Projecting costs and returns for one production period

Front

Which source is NOT mentioned for obtaining budget information? Options: Actual farm or ranch records, County averages and production data, Neighbors

Back

Internet blogs

Front

What is a limitation of budgeting mentioned in the text?

Back

It requires time to search data sources

Front

What is the total income in Jim's average budget for one month?

Back

$1500

Front

Which expense category in Jim's budget is the highest? Options: Tuition and books, Room and board, Gasoline and car expenses, Recreation

Back

Room and board

Front

What is the purpose of a budget according to the document?

Back

To organize future finances